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Page 1: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

ABILITIESLEADING WITH

CAPD E L I V E R I N G O N

2 0 1 4 A N N U A L R E P O R

ABILITIEST

Page 2: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

A M E S S A G E F R O MTODD DUNNINGTON, CEO

MYTHS ABOUT DISABILITIES CLOSE DOORS. THEY DISREGARD POTENTIAL.

Skills Inc. and our work force of more than 600 dedicated employees dispel myths about disabilities every day.

Skills Inc. sets the standard for leading with abilities. It’s a philosophy that guides everything we do, not just because it’s right. It’s also good for business.

We compete in an open market, receive no government subsidies and deliver high-quality products and services to a growing base of customers in the aerospace industry, technology sector and beyond.

A culture of inclusion is our competitive advantage. After providing reasonable accommodation, the focus on disability is no longer in the foreground. Employees are placed in positions and recognized for performance based on job fit and achievement. We set high expectations for all employees – whether they have disabilities or not – and encourage everyone to achieve their potential. In our opinion, anything short of this approach is disrespectful.

Like any company, we do our best work when we match the right people with the right jobs – people like the amazing employees you’ll read about in this report.

It’s especially rewarding when we see individuals exceeding their own self-imposed view of their potential. It’s amazing how people blossom when they realize that labels no longer define them, especially those who have been told in the past that they should have low expectations of themselves.

Self-esteem, confidence – along with job satisfaction – all increase when we are working at our highest potential.

We succeed because we foster a work environment based on respect for people, where people can be – and are – successful.

Thank you for supporting Skills Inc. and helping to dispel the myths that surround employment opportunities for persons with disabilities.

—TODD DUNNINGTON, SKILLS INC. CEO

2 SKIILL INC. 2014 ANNUAL REPORT | LEADING WITH ABILITIES

SKILLS INC. BOARD OF DIRECTORS

• Mac Park / Chair • Barbara Hadley

• Bruce Buchberger • Sally Harter

• Doug Carroll • Rachel Jennison

• John Dacy • John Morse

• Mark Fredericks • Matt Willkens

Salaries & Wages (24.51m)

Materials & Supplies (8.70m)

Bene�ts (2.90m)

Payroll Taxes (2.39m)

Utilities (1.67m)

Other (3.55m)

TOTAL: $43.73 MILLION

SKILLS INC. 2014 EXPENSES

SKILLS INC. 2014 REVENUEFinish (25.14m)

Manufacturing (16.23m)

Technical Services (3.94m)

Other (0.63m)

TOTAL: $45.94 MILLION

1%

9%

35%55%

20%56%

8%

7%5%4%

Salaries & Wages (24.51m)

Materials & Supplies (8.70m)

Bene�ts (2.90m)

Payroll Taxes (2.39m)

Utilities (1.67m)

Other (3.55m)

TOTAL: $43.73 MILLION

SKILLS INC. 2014 EXPENSES

20%56%

8%

7%5%4%

Finish (25.14m)

Manufacturing (16.23m)

Technical Services (3.94m)

Other (0.63m)

TOTAL: $45.94 MILLION

SKILLS INC. 2014 REVENUE

35%55%

9%

1%

Page 3: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

3

A THRIVINGBUSINESS WITH A SOCIAL

A T H R I V I N G B U S I N E S S W I T H A S O C I A LMISSION

M I S S I O N

Skills Inc. is a self-supporting, nonprofit social enterprise that employs people of all abilities in aerospace manufacturing, aerospace finishing, technical services and business solutions.

O N E M I S S I O NThrough responsible management and solid corporate partnerships, we create and maintain a stable, rewarding place of work, where persons with disabilities can contribute their skills.

T W O B O T T O M L I N E S

1) FINANCIAL – Our four lines of business compete in an open market and receive no government subsidies. Grants and gifts from our generous community support our work to give rewarding employment opportunities to people with disabilities.

2) SOCIAL – We train, employ and serve people with disabilities by providing them with jobs, vocational programs and services thatoffer life-changing opportunities to thrive at work.

T H R E E WAY S W E A C C O M P L I S H O U R M I S S I O N

1) EMPLOYING PEOPLE WITH DISABILITIES, who comprise more than 60 percent of our workforce and excel in each of our lines of business.

2) OFFERING VALUABLE EMPLOYMENT PROGRAMS AND SERVICES, including work-readiness assessments, training, mentoring, job placement and more.

3) SERVING AS A ROLE MODEL AND RESOURCE TO THE COMMUNITY, encouraging all employers to embrace a culture of acceptance where people of all abilities can thrive.

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2

3

SKILLS INC. BOARD OF DIRECTORS

• Mac Park / Chair • Barbara Hadley

• Bruce Buchberger • Sally Harter

• Doug Carroll • Rachel Jennison

• John Dacy • John Morse

• Mark Fredericks • Matt Willkens

MYTH: People with

disabilities willincrease workers

compensationinsurance rates.

FACT:Insurance rates are based solely on the relative hazards of the operation and the organization’s accident experience, not on whether workers have disabilities.

Page 4: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

AEROSPACEFINISHINGSkills Inc. is one of Washington State’s largest aerospace aluminum finishers – second only to Boeing. It’s our biggest line of business, with multiple processing lines staffed by expertly trained employees in our Auburn North and Ballard facilities. Skills Inc. is one of very few companies that fabricates and finishes parts.

THE WORK I DOIS MORE THANA JOB – IT’S ASENSE OFBELONGING.

JOHN GORMAN

While training for his job, JOHN GORMAN came up with a creative solution to a challenge he faced. Because of his muscular dystrophy, his right hand wasn’t quite strong enough to squeeze one of the spray nozzles used on our penetrant inspection line in Ballard, where we wash and prep parts for Boeing and other aerospace partners. Though John is right-handed, he tried switching to his left hand for that task. It worked – and didn’t cost a dime. All it took was some ingenuity and adaptability – two strengths that Skills Inc. shares with employees throughout the organization. John continues to seek out opportunities to advance his skills – each and every day.

MYTH: Accommodations

for people withdisabilities are expensive and

complicated.

FACT:On average, most accommodations cost less than $500 or nothing at all.

4 SKIILL INC. 2014 ANNUAL REPORT | LEADING WITH ABILITIES

MYTH: Limitations define

people withdisabilities.

FACT:A disability oftendoes little ornothing to hinderwhat a personcan do on the job.

Page 5: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

LIMITS DON’T

DEFINEME.

MARK NHAIL

MARK NHAIL leans on a tall chair at his workstation in our Auburn North finishing facility, where he racks aerospace parts before they go through the anti-corrosion anodizing process. It’s a job that requires meticulous attention to detail, sometimes thousands and thousands of times over. When a big job comes in, it often goes to Mark because his boss knows it’ll get done right. There’s a reason no one ever wonders why an amputee who lost his right leg as a boy excels at his job as much as Mark does. It’s because his strengths outmatch his disability.

THE WORK I DOIS MORE THANA JOB – IT’S ASENSE OFBELONGING.

Page 6: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

SKIILL INC. 2014 ANNUAL REPORT | LEADING WITH ABILITIES

IF YOU CAN’T DO SOMETHING ONE WAY, CHANCES ARE YOU CAN DO IT ANOTHER WAY AND BE JUST AS SUCCESSFUL.

NOE AGUINIGA

NOE AGUINIGA (pictured above, far right) had been working as a delivery driver before he joined Skills Inc. as a finish inspector.He had no previous experience in aerospace, but he was eager to learn and had a way of motivating youth in our Aerospace Internship Program. As a mentor in our manufacturing business, he gives his trainees the space, encouragement and guidance they needed to develop their skills, knowledge and confidence. Today, Noe is a certified AJAC instructor who teaches engineering blueprint interpretation and inspection techniques to manufacturing employees at Skills and other aerospace companies. Noe is one of morethan 200 employees at Skills Inc. who doesn’t have a disability. He focuses on the many things his colleagues can do – and what he can do to support their career growth.

Page 7: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

AEROSPACEMANUFACTURINGSkills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial and defense supply chains. Our broad range of manufacturing capabilities, along with our knowledgeable staff and high quality standards, gives our second-largest line of business a competitive edge. We thrive on complete customer satisfaction – continually improving our internal processes with our customers’ needs in mind.

7SKIILL INC. 2014 ANNUAL REPORT | LEADING WITH ABILITIES

BUILDING NEWAPPRENTICESHIP OPPORTUNITIESIn 2014, the Aerospace Joint Apprenticeship Committee (AJAC) partnered with Skills Inc. and launched a Precision Metal Fabrication Apprenticeship class at our Auburn South facility. It was the first class of its kind that AJAC hosted at an employer’s facility.

Most of AJAC’s courses are offered at community or technical colleges or in high schools. Students in the two-year program earn credit through South Seattle College while gaining valuable on-the-job training.

“Through this partnership, Skills Inc., South Seattle College and our employers are giving a new generation the skills and knowledge that give Washington State a competitive edge in the aerospace and advanced manufacturing industries,”says Demetria “Lynn” Strickland, AJAC’s Executive Director.

IF YOU CAN’T DO SOMETHING ONE WAY, CHANCES ARE YOU CAN DO IT ANOTHER WAY AND BE JUST AS SUCCESSFUL. MYTH:

Coworkers withouta disability will be

uncomfortable and less productive if they work alongside people with

disabilities.

FACT:Working in an inclusive workplace that values people of all abilities hasa positive effect on everyone.

Page 8: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

ED HAMMOND didn’t know he had a disability when he was first hired at Skills Inc. as an IT specialist. Not long after joining the company, he learned he had ulcerative colitis. At first, he was nervous that the gastrointestinal disease would limit him. But it hasn’t. During his 11 years here, Ed has risen up the ranks and now leads our entire IT server and desktop support staff as Senior Systems Administrator. He manages his team with the same respect and high expectations that fuel his pride in working for a company that does so much to support the career growth of all its employees.

AT SKILLS, A DISABILITY NEVERGETS IN THE WAY OF A FULFILLING CAREER.

ED HAMMOND

EFFICIENCY, INSIDE AND OUTSkills Inc.’s IT department supports all of the company’s lines of business. The same is true for accounting, human resources, maintenance, purchasing, training and other departments. We thrive on running our internal operations as efficiently as the services we provide to our valued customers.

Page 9: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

TECHNICALSERVICESSkills Inc.’s dynamic, on-demand technical services staff includes software developers, hardware test engineers, accessibility and usability testers, and other IT specialists who work closely with our customers to raise product qualitystandards. Our experienced technical recruiters have a strong track record of finding and matching skill sets for hard-to-fill jobs in the tech industry. Our customer-centric approach draws on standardized best practices. We offer support for both short-term and long-term staffing solutions and are continuously adding to our technical proficiencies.

Four years into his career as a manager at Microsoft, STEVEN LOUIE started losing his vision – slowly at first, then so rapidly his doctors feared it was a brain tumor. It turned out to be Stargardt disease, a form of macular degeneration. He never would’ve guessed that losing most of his eyesight would actually open the door to a new and fulfilling chapter in his career. Steven leads the usability and compliance testing team in Skills Inc.’s Technical Services division. He and his staff test a wide range of Microsoft products, providing valuable feedback that allows the company to improve features designed for blind and low-vision users.

WE ARE MAKING A DIFFERENCE. WE ARE IMPROVING TECHNOLOGIES SO BLIND AND LOW-VISION PEOPLE CAN LEAD MORE INDEPENDENT LIVES.

STEVEN LOUIE

9SKIILL INC. 2014 ANNUAL REPORT | LEADING WITH ABILITIES

MYTH: People with disabilities work only in entry-level positions.

FACT:People with disabilities succeed in many occupations, at every level.

MYTH: People are born withtheir disabilities.

FACT:A disability can happen to anyone at any time – sometimes because of an illness or accident, sometimes as a result of aging. Disabilities can be permanent, temporary, recurrent or progressive.

Page 10: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

10 SKIILL INC. 2014 ANNUAL REPORT | LEADING WITH ABILITIES

BUSINESSSOLUTIONSSkills Inc.’s business solutions line offers a wide variety of services, including packaging, labeling, collating, light assembly and kitting. We can take on high-volume, quick-turnaround projects for companies that need to outsource work. Our readily available and flexible workforce is experienced and efficient in meeting expedited deadlines and last-minute requests. We deliver scalable, cost-effective solutions to meet customers’ needs.

PAUL LAROQUE is a problem solver. He’s always looking for ways to improve systems so he and others can do their jobs more effectively. He helped us streamline the database used to track the many trainings we offer our employees. He’s also a leader, serving as chair of the safety committee at our Auburn North facility. With a sign language interpreter at his side, Paul leads the committee’s monthly meetings. He also oversees our regular workplace safety checks. Paul says he’s grateful for all the support and encouragement he gets from colleagues throughout the company.

SKILLS HAS GIVEN ME SO MUCH ROOM TO GROW.

PAUL LAROQUE Developmental/Learning (155)

Physical/Medical (126)

Emotional/Mental Health (99)

Deaf/Hard of Hearing (55)

Visual (27)

Not Speci�ed (51)

SKILLS INC. 2014 DISABILITY DIVERSITY

30%

25% 19%

11%

10%

5%

MYTH: It is impossible to

communicate with adeaf person unless you

know sign language.

FACT:Deaf people comfortablyuse many methods ofcommunication, includinggestures, spoken and written language, interpreter services, and technologies such as text, email, and telecommunicationrelay services.

Page 11: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

THE DIVERSITY OF INCLUSION – Skills Inc. is an inclusive workplace that thrives on the diversity of our workforce. Our deaf and hard-of-hearing employees shown in this photo share one common trait, but that’s where the similarities end. They are all unique and impressive individuals – women and men of many ages, races and cultural backgrounds who hold many different positions in all of our lines of business: from painters, chemical processing rackers and quality inspectors to saw shop operators, chemical lab technicians and CNC (Computer Numerical Control) programmers.

Six out of ten Skills Inc. employees have a self-identified disability.

Page 12: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

CUSTOMIZEDEMPLOYMENTPROGRAM Employees in our Customized Employment Program excel

in various part-time roles, from janitorial and administrative to quality assurance and production. They receive in-depth training, job coaching, help in accessing benefits like Social Security Disability Insurance, and ongoing support. Integrated throughout the organization, across multiple locations and departments, Customized Employment is a great fit for people who are entering the workplace for the first time, re-entering the workforce or who may face significant barriers to employment.

MYTH: It’s easy to tell when

someone has adisability.

FACT:Eight out of every 10 disabilities are not readily apparent.

Page 13: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

VOCATIONALSERVICESOur Vocational Services Program offers workreadiness assessments, internships, job placement, mentoring and other services to people with disabilities. Washington State’s Division of Vocational Rehabilitation and other agencies refer people to Skills Inc.’s Vocational Services, where we foster a process of self-discovery and career exploration that identifies each person’s strengths, skills and interests. When we match someone with a job at a community partner, we work closely with both the employee and the employer, ensuring that the experience is rewarding for both.

COLTER LIND got a job as a truck driver at Firland Foundation Workshop through Skills Inc.’s Vocational Services Program. Within a few months of being hired, Firland named him Employee of the Month, applauding his eagerness to go the extra mile. Colter is a quick study, whether it’s learning how to drive a forklift so he can load and deliver parts more quickly or stepping up as a computer network troubleshooter. He’s a detail guy, who describes himself as both highly distractible and occasionally overfocused. Before Firland, he had never held a job longer than a month. Now, Colter knows he’s valued for all of his contributions.

IT’S MOTIVATINGWHEN PEOPLE FOCUS ON YOUR STRENGTHS. I’M MORE HOPEFUL ABOUT MY FUTURE THAN EVER BEFORE.

COLTER LIND

13SKIILL INC. 2014 ANNUAL REPORT | LEADING WITH ABILITIES

MYTH: Getting information

on how to hire peoplewith disabilities is

time-consumingand complicated.

FACT:Help is easy to getand available atlittle or no cost.

Page 14: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

When KARA VANDERFORD joined our Aerospace Internship Program during her senior year in high school, she quickly gravitated to CNC (Computer Numerical Control) machining. It’s an element of aerospace manufacturing that will allow her to apply her visual arts skills as she programs computers to cut aerospace parts using computer-aided three-dimensional designs. Before specializing as a CNC programmer, Kara will have to learn all the ins and outs of aerospace manufacturing and finishing. She appreciates the opportunity to get such a solid introduction to the aerospace industry. She has her sights set on continuing her career at Skills Inc., where she knows that her heart defect and learning disability aren’t viewed as obstacles to her success.

Page 15: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

15SKIILL INC. 2014 ANNUAL REPORT | LEADING WITH ABILITIES

AEROSPACEINTERNSHIPSSkills Inc.’s Aerospace Internship Program gives students with disabilities in four South King County school districts the chance to gain practical work experience in aerospace manufacturing and finishing while earning credit toward their high school diplomas. Our interns receive one-on-one training, a comprehensive introduction to the aerospace industry, mentoring and personalized instruction. They also have the opportunity to earn a National Work Readiness Certificate and gain valuable life skills – like being on time every day, working with peers, following directions and being reliable team members.

PEOPLE ARE MORETHAN CAPABLE OF DOING THINGS EVEN WITH A DISABILITY. SKILLS IS A PLACE THAT GIVES EVERYONE THE SUPPORT THEY NEEDTO DO THEIR JOB WELL.

KARA VANDERFORD

MYTH: Learning or developmental disabilities prevent people from achieving their goals and leading successful careers.

FACT:People with learning or developmental disabilities learn in different ways and have a variety of skills and knowledgeto offer, which differ from individual to individual.

Page 16: LEADING WITH ABILITIES - Skills Inc. · AEROSPACE MANUFACTURING. Skills Inc. is a world-class supplier of machined and sheet metal parts for the aerospace industry, for both commercial

2014 DonorsOur two annual events help raise funds while giving us theopportunity of connecting with our donors and stakeholders. Through the generous contribution of your time, treasures, and talents, you demonstrate your commitment to bettering our community. Thank you for your support. You help us make the mission happen.

• Aerotek• Aerospace Joint Apprenticeship Committee (AJAC)• AMT• Anonymous• Aramark• Armstrong, Priscilla• Aronson-Campbell Industrial Supply, Inc.• Artistic Solutions, LLC• Baker, Mike• Baker, Rick• BlackHawk Industrial• BlackMoon ProShop• Blakey, Michael• Bounds, Dennis and Debbie• Brent, Keri• Brown, Robert and Mary• Buchanan, Kathy• Buchberger, Bruce and Andria• Caeton, Daniel• Carroll, Doug and Marilyn• Chihuly Studio• Clark, Charles and Nancy• Clear Channel • CNA Foundation• Columbia Bank• CorePower Yoga• Corey, Andrea• Corner, Ulibee• Dacy, John and Linda• David H. Sutherland & Co. Inc.• DeLille Cellars• Dooley, Brian and Monica• Drake, Pamela• Druids Glen Golf Club• Dunnington, Todd and Julie• Elysian Brewing Company• Ethan Stowell Restaurants• Experience Music Project• Fischer, William• Frampton, Charlie and Pattie• Frasse, Peggy• Fredericks, Mark and Kim• Fremont Brewing Company• Furness, Ian

• George, Bill and Marilyn• Goehner, Delbert• Gray, Bill and Brandi• Gromoff, Natalie• Hadley, Barbara and Ray Jameson• Harter, Sally• Heeter, Bill and Dorene• Henshaw Brant• Higgins, Pete• Hilliard’s Beer• Hill-Raaum-Pietromonaco• Imaginetics LLC• Inglewood Golf Club• Jennison, Brian and Rachel• Jonsson, Andrew and Genny• Kibble & Prentice• KING5• Kirkland Parkplace Cinema• Kristensen, Tracy• Larsen, Dan• Leavenworth Oktoberfest• Long, Tracy• Marriott Redmond Town Center• Marriott, Rich• Maynard, Sarah• McMenamins Pubs & Breweries• Microsoft Corporation• Miller, Tait and Corrina• Murray, Bill and Jane• Muzzy, Jeff• Myers, Dwayne• New Day Northwest - KING5• Odyssey Enterprises, Inc.• Oki Golf• Pacific Metallurgical, Inc.• Pacific Science Center• Padolina, Mylene• Park, Alan and Lois• Park, Mac and Laurel Jamison• Peddler Brewing Company• Pellets LLC• Pride, Bob• Portillo, Jose • Rich, Karalee• Robbins, Lexie

• Roberts, Greg and Barbara• Roe, Paul and Cheryl• Rohner Mechanical, Inc.• Rudd Company, Inc.• SAP Software Solutions• Savor Seattle Food Tours• Schmidt, Vladimir• Seafair• Seattle Art Museum• Seattle Seahawks• Seattle Sounders• Seattle Storm• Seidensticker, Robert and Sandra• Selway Machine Tool Company• Simplicity Salon• Sports Radio KJR 950AM• Stericycle, Inc.• Stremick, Dennis and Kathleen• Sullivan, Casey and Caitlin• Suquamish Clearwater Casino Resort• TNT Enterprises • Triumph Group, Inc.• Tysdal, Jerry and Sherry• Umpqua Bank• USI Insurance• Valley Buick GMC of Auburn• Vera Whole Health• Vileta, Tami• VWC, P.S.• Wangari, Maritha• Washington Beer Commission• Wellman, Joan• Wells Fargo Insurance• Westin Bellevue• Woodland Park Zoo• Wright, Mark• Washington State University• Willkens, Matthew and Diane• Zabriskie, Walt

715 30th Street NE Auburn, WA 98002206.782.6000

www.skillsinc.com